Independent sells Lusomundo stake for €24m

INDEPENDENT News & Media yesterday sold its 19% stake in Portuguese media group Lusomundo for €24 million.

The sale forms part of a €300 million programme to reduce the company’s massive debt mountain. Earlier this year, Independent launched a €100m rights issue and announced plans to sell its regional newspaper business, Newsquest, in Britain.

The sale of Newsquest is awaiting approval from Britain’s Competition Commission and a positive decision is expected soon.

The stake was acquired by the Lisbon-based Cofina Group, owners of some of the most important newspapers and magazines in Portugal, including Correio da Manha, Record, Jornal de Negocios, Maxima, TV Guia, Vogue and GQ Portugal.

“In a competitive and consolidating market, we achieved a very good price for this non-core asset,” said Independent’s chief financial officer Donal Buggy.

“The Portuguese media marketplace is currently in the middle of a major realignment, with Lusomondo Media at the heart of it. Cofina Group approached us with a most attractive offer for our 19.1% stake, which had been originally acquired in 1994.

“This sale is a further step in the group’s recapitalisation programme, and I’m pleased to say that this programme is now close to its fullest completion.”

The company has been busy reducing its debt mountain, which stood at €1.2 billion at the beginning of the year. According to brokers, with the proceeds of the disposals and the rights issue, Independent will see its debts fall below 1bn.

Independent’s fortune’s have turned around this year. In September, the company reported first half pre-tax profits of €52.4m, up from €51.7m in the same period last year. Its shares have also jumped over the past year by more than 50%. They closed up by 2.5% yesterday.

The company is believed to be gearing up for a sale of its Abbey Street editorial office, which once housed its printing facilities.

Property analysts believe the building could fetch up to €30 million if it was turned into a retail development. The building is surrounded by the Arnotts department store and the head office of the bookseller, Eason.